U.S. stock futures were trending upward Monday morning, continuing the momentum from last week’s strong performance as chip stocks found their footing and investors prepared for a busy week of economic data and corporate earnings.
The Dow Jones Industrial Average closed at an all-time high last Thursday during a holiday-shortened trading week, bringing it close to the 53,000 mark — a level the index has never reached. The major indexes each gained roughly 2% over the course of the week.
Those gains came even as semiconductor stocks — which have been among the market’s biggest movers this year — began losing steam. Investors have found reassurance in recent strength from the healthcare, industrial, and financial sectors, viewing it as a possible sign that the broader market rally is expanding beyond chip and artificial intelligence stocks.
“This week, investors will continue to question technology valuations: whether they have gone too far, whether they make sense, or whether this is another great bubble — like railways or dot-com — waiting to burst,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.
Chip stocks showed signs of recovery before Monday’s opening bell. Memory-chip manufacturers Western Digital, Seagate, and Micron Technology posted premarket gains of 3.2%, 2.2%, and 2.3%, respectively.
As of 7:24 a.m. Eastern Time, Dow E-mini futures slipped 23 points, or 0.04%, while S&P 500 E-mini futures climbed 33.5 points, or 0.44%, and Nasdaq 100 E-mini futures jumped 324.25 points, or 1.1%.
South Korean chipmaker SK Hynix is set to launch a U.S. stock listing on Monday, aiming to raise approximately $28 billion, according to regulatory filings. The move is seen as another gauge of investor enthusiasm for companies tied to artificial intelligence.
SpaceX rose 1.7% in premarket trading ahead of the company’s scheduled addition to the tech-focused Nasdaq 100 index on Tuesday.
Second-quarter earnings season is set to gain traction later in the month, presenting another key test for the markets. Delta Air Lines and PepsiCo are among the companies expected to release results later this week. According to data from LSEG, S&P 500 companies are projected to report earnings growth of 24.4% compared to the same period last year.
Federal Reserve interest rate policy remains a central focus for investors, who are reassessing expectations for future rate moves. Bets on a rate hike eased somewhat last Thursday following a jobs report that came in cooler than anticipated.
According to CME’s FedWatch tool, traders currently see a 24% probability of a 25-basis-point rate hike at the Fed’s July 29 meeting, down from roughly 30% the week prior. For September, markets are pricing in approximately a 44% chance of a quarter-point increase, compared to 48.3% a week ago.
Expectations for rate hikes had risen following last month’s Federal Reserve meeting, the first chaired by new Fed Chair Kevin Warsh. Minutes from that meeting are expected to be released Wednesday.
Fed Governor Christopher Waller is scheduled to speak in Rome later Monday, and New York Fed President John Williams is expected to offer commentary Thursday. The Fed chair is set to testify before the House Financial Services Committee the following week.
A closely watched survey of the services sector — the ISM services index — is due out Monday and is expected to show a modest dip to 54.0, still considered a healthy reading.
